Buenos Aires province on verge of a comeback dollar bond

NEW YORK, May 20 (IFR) - If local newspaper reports prove to
be true, Argentina's Province of Buenos Aires is all set to
launch a new bond deal worth at least US$500m in the next few
days.

If it happens, the deal would be the first international
bond sale from the province since 2011 and would mark a revival
of a similar transaction rumored to be in the works in May of
last year.

At the time, however, concerns over Argentina's looming
default meant investors were demanding a yield that was well
above the province's target.

But despite all this background noise, so far the reaction
from market participants about a potential deal from the
province has been positive.

"There is appetite for yield and for paper that is not
involved in the legal saga," said Jorge Piedrahita, CEO of
brokerage Torino Capital in New York.

Investors seem keen to increase their exposure to Argentina
and have shown strong appetite for bonds issued by the local
governments, which are isolated from the sovereign's legal
dispute with holdout creditors.

Earlier this year, the City of Buenos Aires amassed around
US$2bn in orders when it sold a new US$500m six-year amortizing
bond to international investors, which priced at a yield of
8.95%.

According to the local reports, the province is targeting a
yield of below 10% for the new sale.
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